CHFHKD closes lower for the 2nd day in a row
Swiss Franc/Hong Kong Dollar (CHFHKD) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CHFHKD finished Tuesday at 7.7811 tanking 262 pips (-0.34%). Today's close at 7.7811 marks the lowest recorded closing price since March 11th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 7.8026, the currency confirmed its breakout through the prior session low after trading up to 232 pips below it intraday.
Daily Candlestick Chart (CHFHKD as at Apr 16, 2019):
Tuesday's trading range has been 355 pips (0.45%), that's slightly above the last trading month's daily average range of 335 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHFHKD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 7.7709 (S1). Unable to break through the key technical resistance level at 7.8086 (R1), the pair closed below it after spiking up to 7.8149 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on April 9th, CHFHKD lost -0.34% on the following trading day.
Crossing below the lower Bollinger Band for the first time since March 7th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 7.8601 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 7.7535, downside momentum might accelerate should the forex pair break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for CHF/HKD. Out of 562 times, CHFHKD closed lower 54.27% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.4% and EURUSD closing -0.2% lower. On the flipside the best performers have been USDCHF closing 0.38% higher and AUDUSD gaining 0.03%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been TRYJPY surging 0.57% and CADCHF closing 0.52% higher. The worst performers of the day have been EURTRY tanking -0.82% and USDTRY closing -0.63% lower. Read more